Big banks saying no to California IOUs

posted at 1:22 pm on July 7, 2009 by Ed Morrissey

The financial sector has just delivered a message to California, roughly translated as, “Quit working on cow tails and apologies to long-dead people.”  A group of the largest banks in the US has announced that it will stop accepting California IOUs by Friday.  The state will run out of cash by the end of the month if it cannot issue IOUs, as long as its $24 billion budget gap remains unresolved:

A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap. …

The group of banks included Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and J.P. Morgan Chase & Co., among others. The banks had previously committed to accepting state IOUs as payment. California plans to issue more than $3 billion of IOUs in July.

Ms. Mills of the CBA said some banks were concerned that there aren’t processes in place to accept IOUs, and also worried about fraud issues.

One of the reasons we use a common currency, provided by the federal government, is to avoid fraud issues.  Several people have wondered at the legality of issuing IOUs as cash devices.  They accuse California of creating currency, which is unconstitutional, although the state has done it on previous occasions.

Also, Californians may not understand this, but these IOUs are essentially state bonds.  The people who buy them are demanding 3.75% interest APR on the devices, which means that the state is actually spending more money than they normally would now.  The longer they use IOUs instead of cash, the more expensive it gets for Californians later when the IOUs get cashed.

Interestingly, all of the above banks have accepted TARP funding, or perhaps more accurately, had TARP funding thrust on them.  Would the Treasury have to have approved this decision?  Did the Treasury insist on this decision?  If so, it could either signal a hardline approach from the White House on California’s budget crisis, or give them an excuse to intervene.

A bailout would only delay the day of reckoning.  California’s budget woes are entirely of their own making, and a bailout would not solve the underlying political problems in California.  They tax too much and they spend too much, and their political class hasn’t got the guts to actually solve either of those problems, let alone both.  A bailout would put California right back in the same place next year, and the year after that.  If ever there was a moment for tough love from Uncle Sam, this is it.


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All the while, the rot just kept on creeping. Now it’s showing through and makeup won’t hide it any more.

Thunderstorm129 on July 7, 2009 at 2:13 PM

Wait. When did we start talking about Nancy Pelosi?

VibrioCocci on July 7, 2009 at 2:19 PM

How come Ed never mentions that California is a donor nation — paying more in feredal taxes than it received in federal expenditures and that California would have billions in surpluses if the federal government did its job, secured the boarder and deported all the illegal aliens leaching off the Golden State to the tune of about ten billion per year?

tommylotto on July 7, 2009 at 1:39 PM

Don’t fool yourself…the idjits in Sacramento and LA and SF do everything in their power to KEEP the border open and keep cramming illegals into the cities. Look up the ‘sanctuary city’ principle used in LA. These are the same people who specifically prohibit our police, fire, and healthcare workers from enforcing immigration laws.

Fighton03 on July 7, 2009 at 2:21 PM

Quaid…start the reactor…free Mars

CMonster on July 7, 2009 at 2:21 PM

“It is NOT a tumor”

Jeff from WI on July 7, 2009 at 2:22 PM

There’s a reason the Legislature would love to disarm every citizen tomorrow…

Harry Schell on July 7, 2009 at 2:17 PM

It’s not just CA. “Former” Black Panther, now IL Congressman Bobby Rush is pushing this bill:

http://dprogram.net/2009/01/14/illinois-democrat-introduces-gun-tracking-bill/

If this passes, it’s the beginning of the end for gun rights in the US.

guntotinglibertarian on July 7, 2009 at 2:22 PM

My best eastern liberal impersonation:

“Man, California has some major problems. The government should get involved in that.”

ROCnPhilly on July 7, 2009 at 2:22 PM

Blake on July 7, 2009 at 2:11 PM

What’s your point?

Being gerrymandered doesn’t mean that people are forced to vote for anyone. CA -does- elect people who seek to remove money from the state and give it to others.

If they don’t like it, they could vote for someone else. apparently, CA residents like being raped.

lorien1973 on July 7, 2009 at 2:24 PM

mmcnamer1 on July 7, 2009 at 2:15 PM

Many freaks living in the No. Bay area and Hollywood, that’s for sure. I can also attest to the fact that there are loads of great Americans living in that state, Americans who spend their days working, creating, and growing much of the fruit and nuts we eat. The politics of Ca. are unfortunately ruled by the voting block that dominates the big cities, where millions of people live off the government tit, or are members of a union. When looking at an electorate map by the region in Ca., much of the state votes red, but all big cities are very blue and dominate by numbers. To further the decay, small business owners have been leaving the state by the droves; big business already left some years back.

Keemo on July 7, 2009 at 2:24 PM

I don’t dispute that, rather your underlying assumption that there exists some group of people that are duty-bound to provide anybody with anything (eg. ‘provide’ a civil society).

We should be building these things for ourselves. Any other belief immediately casts us into the role of sheep. Americans are supposed to be strong-minded, independent individuals, not sheep….hence my assertion that most ‘Americans’ are nothing of the kind.

Then what are our leaders for?

I think it’s safe to say we have a large nation of sheep. I have a fading memory of the Americans you refer to, but haven’t seen one in some time. The leftists correctly banked on it. Now it seems we have to find a way to force them to do what we want. I wonder if it’s even remotely possible to get people to want to do what we want.

JiangxiDad on July 7, 2009 at 2:26 PM

I don’t care for Whitman, our real hope was Tom McClintock. As far as prop 13, they can still raise our taxes, just not as easily. Our proplerty taxes have gone up 25% in the last 14 years. They call them assessments.

Rose on July 7, 2009 at 2:27 PM

Hey, California:

STOP. SPENDING.

James on July 7, 2009 at 2:28 PM

If ever there was a moment fortough love from Uncle Sam to take advantage of a crisis, this is it.

FIFY

connertown on July 7, 2009 at 2:28 PM

Kaleefornia is so pathetic. The GOP leadership needs to start comparing the Obama/Pelosi agenda with the disasterous situation in California. Cal is the lib blueprint. What else do sane people need to know? Liberalism, if allowed = EPIC FAIL

marklmail on July 7, 2009 at 2:29 PM

…Americans who spend their days working, creating, and growing much of the fruit and nuts we eat..

Keemo on July 7, 2009 at 2:24 PM

You didn’t mention harvesting. One of the reasons for the overt antagonism toward immigration enforcement is the cheap labor force. Just reaping what you’ve sown (so to speak).

ROCnPhilly on July 7, 2009 at 2:31 PM

Want to bet the State goes after the bank’s state licenses for this? Gansta government is all the rage.

michaelo on July 7, 2009 at 2:31 PM

Isn’t California too big to fail?

thebadoutlaw on July 7, 2009 at 2:32 PM

If they don’t like it, they could vote for someone else. apparently, CA residents like being raped.

lorien1973 on July 7, 2009 at 2:24 PM

I was once told in the Army “Complain to many times about being screwed and people think you’re bragging”

LincolntheHun on July 7, 2009 at 2:33 PM

Wasn’t Obama telling us last week, that the rest of the country should be following the CA model?

PappaMac on July 7, 2009 at 1:31 PM

Obama told us a lot of things last week. No single item made any more sense than this one did.

Omama and his administration became the dreaded “blue screen of death” well before the California suggestion. Epic crash!!!

Yoop on July 7, 2009 at 2:33 PM

California needs to have a bake sale.

moonsbreath on July 7, 2009 at 2:33 PM

It is always yada yada yada, spend too much, out of control, yada yada yada, need to learn lesson… When in reality California would be doing just fine if the fed would just do its job and give California its fair share of tax revenues.

tommylotto on July 7, 2009 at 1:39 PM

If the federal government simply returned tax money to states on a 1:1 basis, why tax them at all? It would imply that the government doesn’t spend any of it, they just redistribute it. Wait, now that I think about it…

Also, what makes you think that California would ever have a surplus? They’re not overspending by tens of billions because they require that much to cover the bare essentials, after all. If the federal government “did its job” and put CA tens of billions of dollars in the black, the state government would spend it and then some, and you’d be right where you are now.

You cannot fix fiscal irresponsibility by wishing you had more money. You fix it by learning to spend within your means. Get back to us when CA figures that out (which will be about the same time our guys in NY decide to face reality).

Tonus on July 7, 2009 at 2:35 PM

Stay tuned for the slow motion crash everyone knows is coming. Except of course, the idiots in Sacramento.

GarandFan on July 7, 2009 at 2:35 PM

I wonder if it’s even remotely possible to get people to want to do what we want.

JiangxiDad on July 7, 2009 at 2:26 PM

Wrong approach.

We must refuse to allow these sheep to abuse gubmint to get us to do what they want.

LimeyGeek on July 7, 2009 at 2:36 PM

LincolntheHun on July 7, 2009 at 2:33 PM

I do think that is what it’s about too. They want us to know they are footing the bill, so it makes bailing them out more pallatable. Banks made that argument too – hey, we paid in a lot of taxes, so we deserve it.

lorien1973 on July 7, 2009 at 2:38 PM

It doesn’t matter if the bank honors them now or not. People who have already performed work for the state will have to wait. Others, will refuse to perform further work until the state is paying them again. This happened last year, too.

Blake on July 7, 2009 at 2:38 PM

The sooner CA goes all Mad Maxx the better.

Aquateen Hungerforce on July 7, 2009 at 2:39 PM

The sooner CA goes all Mad Maxx the better.

Aquateen Hungerforce on July 7, 2009 at 2:39 PM

We don’t need another hero.

connertown on July 7, 2009 at 2:40 PM

Wrong approach.

We must refuse to allow these sheep to abuse gubmint to get us to do what they want.

LimeyGeek on July 7, 2009 at 2:36 PM

And now we begin to agree. What’s worse than a nation of sheep? A nation of sheep who voted to lock up the sheepdogs. Any suggestions my friend? I listen to what you say carefully.

JiangxiDad on July 7, 2009 at 2:46 PM

This was probably triggered by the State of California itself, when it refused to honor its own IOUs as payment of state fees and taxes.

Chris_Balsz on July 7, 2009 at 2:50 PM

One thing to remember is that this is California, and an “emergency” is guaranteed to occur sooner rather than later. Some huge earthquake, wildfire, or flood will come along — people will die or be left destitute — and the state legislature can take a break from debating cow tails or appointing their remote relatives to boards that meet to discuss self-esteem issues among cosmetologists, and pass an “emergency tax surcharge for a limited duration”.

Like the 1/4-cent surcharge on sales tax for five years that was passed after the 1989 Loma Prieta quake to fund earthquake-ready infrastructure…..and is still in place, nearly 20 years later.

cthulhu on July 7, 2009 at 2:54 PM

Now do you see why it’s so dangerous to control the financial system? They can give our money away at their whim, to PROMOTE MORE SPENDING. There is no consequence! Jesus H, I’m gonna have a stroke.

marklmail on July 7, 2009 at 2:55 PM

The growing economic issues have pushed many of us to get back to basics and its time for the State of California to do the same. To date, The State of California has not done enough to help reduce the growing budget that has been growing out of control for years. Changes need to be made to drastically reduce the growing budget and get it under control instead of just putting another band aid on it. Major cuts and/or changes need to be made to the Welfare System, Illegal Alien Services, Public School System, Prisons, and Unions.

The Welfare System: Do we need this? Only 10% of what the system is now. The Welfare System is full of dead beats who abuse the system because they are too lazy to work. (i.e. Welfare to Work Program) Stop encouraging laziness and get these people to work. (HUGE SAVINGS)

Prisons: Erect a “Tent City” in one of our enormous deserts for the criminals. Stop excusing people in court of minor traffic infractions by allowing them to perform, Community Service, by cleaning the freeway……Make the offenders pay theirs bills and have the light offenders in prisons clean the freeways. Change the appeal process and lets begin to put to execute prisoners on Death Row. (SAVE MONEY REDUCE OPERATING COSTS OF PRISONS)

Illegal Aliens: Eliminate the Illegal Immigrant System!!!!!!! If someone is in this country illegally, send them home. If they have committed a crime, Non-Violent: Call INS for deportation, Violent: They serve time and then call INS for deportation. Once deported, they are monitored for NO-ENTRY back into the United States. Impose severe penalties to business owners who hire Illegal Immigrants. The jobs being occupied by Illegal Immigrants for Welfare placement. (E_Verify does wok!)

Public Schools are failing and the only solution is, “More Funding Needed!” Stop this non-sense. The Bureaucracy of the Public School System is too enormous and out of control. The only solution at this time is to turn it over to private institutions to run.

Unions: Major Tax Burden. It is evident that the current Contracts can no longer be met. Why did these contracts get out of hand? Who was responsible for these contracts to get out of hand? Bottom Line…….Taxpayers are no longer going to support this.

In addition, a Part Time Legislature is a very good idea…

Message to Legislature: STOP putting off what needs to be done. Californians are the highest Tax Payers in the nation and we have no more to give…..IT’S YOUR TURN. Stop lopping Cow Tails off and do your job!

NO MORE TAXES
STOP YOUR WASTEFUL SPENDING

BigMike252 on July 7, 2009 at 2:55 PM

JiangxiDad on July 7, 2009 at 2:46 PM

Ultimately, there’s always the Galt-esque solution of refusing to participate in the gubmint’s looting of our economy. People that can afford to close businesses and retire should do so, and those that are responsible for writing extortion checks to the gubmint must stop doing so.

But that’s a scary route for many – the thought of being among those (before the IRS is bankrupted by enforcement costs) that get targeted by armed IRS agents is not pleasant.

But cutting off funding is the ultimate spigot.

Recently, I’ve been tossing a brainfart around….trying to figure out a way to independently hold both congress and the administration accountable to the supreme law of the land via massive class-action lawsuits.

I’m pretty sure that, as citizens, we all qualify as injured parties ‘with standing’, so surely we must be able to corral, say, a million ‘producers’ to file suit against the gubmint for violating the Constitution (probably the 10th Amendment in many cases) and render all such legislation and executive orders void.

If they won’t uphold the law, we must….then we must impeach them if they continue to fail in their duty as our employees.

LimeyGeek on July 7, 2009 at 3:00 PM

Like this 2 million $ funeral today? I don`t understand what happened to spread the wealth around> Why don`t all the Special Hollywood Obama supporters write Arnold a check?How bout put your money where your mouth is. Its the least they could do to help out their Pres. I mean really aren`t they thankful for the new railroad to Vegas they`re getting. I`m just throwing it out there.

LSUMama on July 7, 2009 at 3:04 PM

Like this 2 million $ funeral today?

Marketwatch puts the tab at $4 million. Is NAMLBA kicking in some bucks, too?

guntotinglibertarian on July 7, 2009 at 3:08 PM

Most politicians are like venemous vipers. If you cuddle up with one and it bites you, you have only yourself to blame. You knew what it was from the beginning. If Californians don’t want vipers in elected office they shouldn’t vote for them. Ultimately, it’s their own damned fault and I see no solution short of politically well-educated citizens voting issues and not parties. Even voting against incumbents doesn’t solve the problem if you still don’t know who or what you’re voting for. The game continues while only the faces change.

SKYFOX on July 7, 2009 at 3:09 PM

The sooner CA goes all Mad Maxx the better.

Aquateen Hungerforce on July 7, 2009 at 2:39 PM

We don’t need another hero.

connertown on July 7, 2009 at 2:40 PM

Does that mean Los Angeles = THUNDERDOME?!

I might actually take the six-hour drive down from San Jose to that hellhole, just to see Master Blaster take out scores of vapid celebrities.

TheMightyMonarch on July 7, 2009 at 3:09 PM

It doesn’t matter if the bank honors them now or not. People who have already performed work for the state will have to wait. Others, will refuse to perform further work until the state is paying them again. This happened last year, too.

Blake on July 7, 2009 at 2:38 PM

I’ve already told them my company won’t provide any more services going forward. I am preparing to lay off 6 employees.

guntotinglibertarian on July 7, 2009 at 3:11 PM

Heleecoptur Ben, get in the choppa!

LevStrauss on July 7, 2009 at 3:20 PM

I’m stuck continuing to work.

Blake on July 7, 2009 at 3:21 PM

SKYFOX on July 7, 2009 at 3:09 PM

Scorpion and frog is a better analogy.

lorien1973 on July 7, 2009 at 3:25 PM

I am getting sick and tired of this hysterical shrieking by conservatives that THE SKY OVER CALIFORNIA IS FALLING.

Nobody….I REPEAT, NOBODY...in California is believing any of this bull, and there is not a single state, county or local government agency that is doing anything about this manufactured crisis.

jay12 on July 7, 2009 at 3:37 PM

The liberals are here and they’re her to help!

Such is the determination of Ca. libs to destroy the state in order to achieve their twisted ends.

Its the Auric Goldfinger exploit to control which brand of marshmallows we’re allowed to buy.

Speakup on July 7, 2009 at 3:37 PM

Don’t fool yourself…the idjits in Sacramento and LA and SF do everything in their power to KEEP the border open and keep cramming illegals into the cities.

Fighton03 on July 7, 2009 at 2:21 PM

As I already pointed out, you have your chicken and your egg confused. California tried to save itself in 1994 with proposition 187, but the federal government declared it unconstitutional. California could not keep them from coming in, because THAT was Washington’s job. California HAD to care for them, because Washington told them it was unconstitutional not to. 15 years later the entire population of the State has been changed and the illegals and their anchor babies are a political force that must be appeased. Washington ruined this state. Stop blaming Californians — at least we tried in ’94. What has Washington ever done to try to solve this problem?

tommylotto on July 7, 2009 at 3:48 PM

trying to figure out a way to independently hold both congress and the administration accountable to the supreme law of the land via massive class-action lawsuits.

I’m pretty sure that, as citizens, we all qualify as injured parties ‘with standing’,

Yeah, I’m waiting to hear from the 3rd branch too, before the whole thing is shut down. I remember seeing the new chief justice and his nice wife and kids. Would be a shame for him not to do anything with his opportunity. And yeah, that “standing” issue sure is a bi*ch. Let’s hope there’s still somebody standing.

JiangxiDad on July 7, 2009 at 3:53 PM

And yet, some of the people in calif keep electing these jerk offs.
They have not posted a budget on time in close to 10 years.
yet they all get re elected and re elected time n time again.
I live in Ca, personally I hope it gets VERY BAD VERY UGLY , so people will learn WE the PEOPLE must be engaged.
we cannot TRUST the politicians to do the right thing.
I would like to see a recall on EVERY ONE of them.

ColdWarrior57 on July 7, 2009 at 3:54 PM

A sensible next step is for the banks to repay TARP funds with their California IOU’s.

another note:

new name for GM: Camel Motors (since a camel is a horse put together by committee.

redriver59 on July 7, 2009 at 4:01 PM

One of the reasons we use a common currency, provided by the federal government, is to avoid fraud issues. Several people have wondered at the legality of issuing IOUs as cash devices.

A couple small notes: Our common currency is provided by the Federal Reserve, not the Federal Government, that’s why each bill prominently displays “Federal Reserve Note” on the front. Also, each dollar issued by the Fed is actually an IOU (the whole money as debt theory), this is why on their balance sheet, each dollar in circulation is recorded as a liability.

In effect California is simply trying to issue it’s own currency, which is already garnering a thriving (semi-black) market. Honestly, this is just as “fraudulent” as each dollar issued by the Fed. Maybe they can get China to buy a block of securitized IOUs, much like they buy treasuries – California has about the same chances of paying them back as the Federal Government.

Ahh a Lion on July 7, 2009 at 4:02 PM

If California would secede it could stop the money from flowing out of the state to the federal government and be able to enforce its own border.

agmartin on July 7, 2009 at 4:10 PM

I just looked up the recall process in Ca.
Grounds for recall are NOT required in calif.

http://www.ncsl.org/Default.aspx?TabId=16581

TIME FOR A RECALL!
We are bleeding MONEY and they are talking about COW TAILS???

ColdWarrior57 on July 7, 2009 at 4:25 PM

Sh!t…meet Fan.

PappaMac on July 7, 2009 at 1:23 PM


Winner winner chicken dinner.

Lisa on July 7, 2009 at 4:29 PM

I just looked up the recall process in Ca.
Grounds for recall are NOT required in calif.

http://www.ncsl.org/Default.aspx?TabId=16581

TIME FOR A RECALL!
We are bleeding MONEY and they are talking about COW TAILS???

ColdWarrior57 on July 7, 2009 at 4:25 PM

hell, thats how this idiot got in there. Gray Davis was conservative compared to this retard.

Lisa on July 7, 2009 at 4:30 PM

How about the banks hire repo men and take what’s owed them?

I.E. California.

James on July 7, 2009 at 4:30 PM

Reality is about to kick the California Voter square in the yarbles.

ronsfi on July 7, 2009 at 4:37 PM

Meg Whitman comes from Goldman Sachs…so does Jon Corzine of New Jersey…how’s that working out for New Jersey?

She will be a disaster, just like Arnold. She will lie to get elected, just like Corzine, Arnold, Obama and Bloomberg.

Meg might be a Republican and knows how to make money, but she loves supporting all the liberal social issues like global warming, just like the rest of these bunch of yahoos.

luvstotango on July 7, 2009 at 4:39 PM

where millions of people live off the government tit, or are members of a union.

Which pretty much amounts to the same thing these days.

MarkTheGreat on July 7, 2009 at 4:47 PM

Time to let the seals die and the artists starve.

aero on July 7, 2009 at 1:26 PM

No it is time for the artist to eat the seal instead of drawing them.

Kill or be killed.

izoneguy on July 7, 2009 at 4:47 PM

How come Ed never mentions that California is a donor nation — paying more in feredal taxes than it received in federal expenditures

tommylotto on July 7, 2009 at 1:39 PM

The only solution I can think of is for California to seceed from the nation. And quickly.

MarkTheGreat on July 7, 2009 at 4:48 PM

Not just “No”, but “HELL no!”

mojo on July 7, 2009 at 4:51 PM

California needs to have a bake sale.

moonsbreath on July 7, 2009 at 2:33 PM

Start drilling for oil…use the eco-nazis to lubricate the drill pipe.

When you run out of those start using lawyers they are very greasy.

izoneguy on July 7, 2009 at 4:51 PM

How about the banks hire repo men and take what’s owed them?

I.E. California.

James on July 7, 2009 at 4:30 PM

I have several clients in litigation now trying to get paid from some CA vendors.
They have stopped shipping anything to CA, now you see why.
Soon the food supplies will stop. Next the coal trains. The Grapes of Wrath in reverse.

izoneguy on July 7, 2009 at 4:53 PM

We need this thing to play out … we need to bail out California.

This will be just another log on the fire for 2012 … in addition to a failed Stimulus Package – a failed bailout of California … along with other treats we’ll be able to serve up by then to the voters.

LOVE IT.

HondaV65 on July 7, 2009 at 4:55 PM

I am sure if everyone in California joined SEIU, Acorn, AFSCME, doink and Ahnold changed political affiliations AND headed up the Barack Youth Blue Shirt Movement, Washington may allow them some chump change.

jdubya on July 7, 2009 at 4:57 PM

I am sorry, but it is really hard for me to work up much sympathy for the people in California, particularly when they elect people as stupid as this to state government:

http://boortz.com/nealz_nuze/2009/07/government-idiot-of-the-day.html

Of course, this nation is right on California’s heels in the race to financial destruction.

-Dave

Dave R. on July 7, 2009 at 5:43 PM

They tax too much and they spend too much

It’s impossible to do both while running a budget deficit. A large part of the reason they spend too much is because the voters are not asked to pay in taxes for what they government they vote for actually costs them. The tax rates in California are high, yes, but they are not nearly high enough.

If Republicans (not just in California, but also in DC), in the name of fiscal responsibility, were to seek to raise taxes as a “tough love” measure until the budget were balanced, you’d begin to see bipartisan support for reducing government spending. The status quo, with Republicans wedded to the idea of no new taxes and Democrats wedded to the idea of no new spending cuts, is a puerile game of chicken. The public would reward, rather than punish, the party that blinks first.

Milton Friedman, hardly a traitor to conservatism, said he’d prefer a government with a huge but balanced budget to a government with a tiny budget funded by deficit spending. What we have now is the worst of both worlds.

hicsuget on July 7, 2009 at 6:22 PM

Soon the food supplies will stop. Next the coal trains. The Grapes of Wrath in reverse.

izoneguy on July 7, 2009 at 4:53 PM

Ummm, you have no idea just how much of the nations food supply California produces do you. If the food supply stops, it wont be California in trouble, it will be you in trouble. California doesn’t have the 6th largest economy on earth for no reason, agriculture is like our second largest industry.

Agriculture

Agriculture (including fruit, vegetables, dairy, and wine production) is a major California industry. In fact, California is the world’s fifth largest supplier of food and agriculture commodities.[7] Agriculture accounts for just slightly over 2% of California’s $1.55 trillion gross state product.[citation needed] Airborne exports of perishable fruits and vegetables amounted to approximately $685 million in 2007.[8] By way of comparison, California exported more agricultural products by air that year than 23 other states did by all modes of transport.[9]

According to the California Department of Food and Agriculture, “California agriculture is nearly a $36.6 billion dollar industry that generates $100 billion in related economic activity.”[10] The state’s agricultural sales first exceeded $30 billion 2004[11], making it more than twice the size of any other state’s agriculture industry.

California is the leading dairy state.[12] Milk is California’s number one farm commodity.[11] California’s dairy industry generated $47 billion “in economic activity” in 2004 and employed over 400,000 people.”[12]

doriangrey on July 7, 2009 at 8:05 PM

If you think California’s in trouble, just wait til China won’t accept Obewon’s iou’s. We won’t be able to buy a pack of bubble gum.

Kissmygrits on July 7, 2009 at 10:55 PM

And no Federal bailout in site. That’ll teach Californians to vote in a Republican governor!

“I’m going to make California howl!” – Barry Soetoro

(apologies to General Sherman)

Dr. ZhivBlago on July 8, 2009 at 4:59 AM

I solved my issue with Kali-for-ni-a, I moved to AZ.

No, I won’t be back.

dthorny on July 8, 2009 at 7:53 AM

I am getting sick and tired of this hysterical shrieking by conservatives that THE SKY OVER CALIFORNIA IS FALLING.

Nobody….I REPEAT, NOBODY…in California is believing any of this bull, and there is not a single state, county or local government agency that is doing anything about this manufactured crisis.

jay12 on July 7, 2009 at 3:37 PM

NOBODY???
have you spoken with EVERY one in Calif ?
I know of at least 10 people that are VERY concerned about this !
so either you dont know what you are talking about or are lying.

ColdWarrior57 on July 8, 2009 at 11:43 AM

Test to see if my comments work…unlike California’s government.

scott_lauritzen on July 8, 2009 at 12:45 PM

“CA Budget Battle Devolves Into Food Fight”
CBS-13 Sacramento

Throwing IOU eggs?

maverick muse on July 8, 2009 at 2:48 PM

ColdWarrior57 on July 8, 2009 at 11:43 AM

As low as CA home prices have fallen, their stagnant market proves that people are LEAVING, not entering CA to buy “great deals”.

maverick muse on July 8, 2009 at 2:49 PM

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